'A company is like sports. You don’t get to pick who is on the other team,' CN president Claude Mongeau says of the CPR rail proxy battle.

Claude Mongeau dismissed speculation that Hunter Harrison he would try to poach current CN executives if he wins the CP Rail job.
REUTERS/Michael Creagen

By:Vanessa LuBusiness Reporter, Published on Tue May 15 2012

Canadian National Railway says it is not worried about possible competition if its retired CEO Hunter Harrison winds up taking the helm at rival CP Rail.

“A company is like sports. You don’t get to pick who is on the other team,” CN president and CEO Claude Mongeau told reporters Tuesday after a speech at the Toronto Board of Trade. “Solid competition is good for sport ... we will compete hard with whoever is the leader there.”

Pershing Square Capital Management, which is locked in a proxy fight at CP rail, wants to see Harrison replace the current president and CEO Fred Green.

CP’s board of directors is standing behind Green, so it will come down to what shareholders want when CP meets in Calgary on Thursday.

While Mongeau says he’s not worried about Harrison, who retired in 2009, the company has filed a formal lawsuit in Chicago, arguing the former chief executive has breached his non-compete agreement by considering the CP post.

It has asked a judge to uphold CN’s decision to withhold pension and other payments valued at $40 million as well as order Harrison to return payments already made.

“We hope the court will confirm that we have the right to do what we have done,” he said.

Mongeau also dismissed speculation that if Harrison wins the top job, he would try to poach current CN executives, perhaps those who might want to become CEO at CP, given Harrison doesn’t intend to stay beyond three to five years.

“We have a good story. We have a winning team. I think people are loving it at CN,” he said, calling it flattering that CN executives are considered among the industry’s best. “Three to five years is a long time. We have deep bench strength. Over time we’ll have to manage but I’m not concerned about losing people.”

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